Fleury (FLRY3) Q4 2024 earnings summary

Executive summary

• Achieved robust growth in 2024, driven by successful integration with Grupo Pardini, expanding geographic presence and operational synergies across 14 states, reinforcing leadership in diagnostic medicine and outpatient healthcare services.

• Gross revenue reached R$8.32 billion in 2024, up 19.5% over 2023 (7.4% pro forma), with 4Q24 gross revenue at R$1.99 billion, up 8.7% year-over-year.

• Diversified revenue streams across B2C, B2B, Novo Zelos/New Links, and healthcare platforms, enhancing resilience and market leadership.

• Strategic acquisitions (Grupo São Lucas, Confiance Medicina Diagnóstica) expanded regional presence and operational capabilities.

• Continued innovation with integrated medical centers, digitalization, and AI initiatives, improving efficiency and customer experience.

Financial highlights

• Gross revenue in 2024 was R$8.32 billion (+19.5% YoY; +7.4% pro forma); 4Q24 gross revenue was R$1.99 billion (+8.7% YoY).

• EBITDA for 2024 was R$2.0 billion (+19.6% YoY; +9.4% pro forma), margin 25.8%; 4Q24 EBITDA was R$405.5 million (margin 22%).

• Net income in 2024 was R$616.2 million (+32.0% YoY), margin 8.0%; 4Q24 net income was R$84.0 million (+3.3% YoY), margin 4.6%.

• Operating cash generation in 2024 was R$1.93 billion (+34.1%), with cash conversion at 97.4% of EBITDA.

• CAPEX in 2024 totaled R$488.1 million (+18.0% YoY), representing 6.4% of net revenues, focused on digital, new units, and integration.

Outlook and guidance

• Expect continued margin expansion through revenue growth, cost discipline, and efficiency programs, with further operational leverage and ROIC improvements.

• Ongoing focus on digital transformation, integrated care, and disciplined capital allocation, with expansion of service offerings in infusions, orthopedics, ophthalmology, and fertility.

• Maintains positive long-term sector outlook, with resilience to macroeconomic challenges.